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Pioneer Power Solutions (PPSI)
NASDAQ:PPSI
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Pioneer Power Solutions
(NASDAQ:PPSI)
48Neutral
Positive Factors
Business Strategy
The recent sale of the E-Bloc business positions Pioneer to accelerate the emerging e-Boost off-grid EV charging business and invest in its HomeBoost and PurePower businesses.
Financial Performance
The sale of the Pioneer Custom Electrical Products business unit for $50M unlocks immediate value for shareholders.
Negative Factors
Risks
Risks include dilution risk, customer concentration, product-adoption risk, supply-chain delays, regulatory risks, competition risk, and global macroeconomic and geopolitical uncertainty.
Pioneer Power Solutions (PPSI) vs. S&P 500 (SPY)
Market Cap
$34.25M
Dividend YieldN/A
Average Volume (3M)49.69K
Price to Earnings (P/E)―
Beta (1Y)2.34
Revenue Growth-19.60%
EPS Growth-483.35%
CountryUS
Employees143
SectorIndustrials
Sector Strength66
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-0.69
Shares Outstanding11,012,503
10 Day Avg. Volume28,773
30 Day Avg. Volume49,692
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.12
Price to Cash Flow (P/CF)-3.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.00Price Target Upside201.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Pioneer Power Solutions Business Overview & Revenue Model
Company DescriptionPioneer Power Solutions, Inc. (PPSI) is a U.S.-based company that operates in the electrical equipment manufacturing sector. It specializes in designing, manufacturing, and selling electrical transmission and distribution equipment. The company's core products include transformers, switchgear, and engine-generator sets, which serve various industries such as utility, industrial, and commercial sectors.
How the Company Makes MoneyPioneer Power Solutions generates revenue primarily through the sale of its electrical transmission and distribution equipment. This includes custom-engineered and manufactured transformers and switchgear solutions tailored to meet the specific needs of their clients. The company also offers related services, such as installation and maintenance, which provide additional revenue streams. Key factors contributing to its earnings include fostering long-term relationships with utility and industrial customers, leveraging its engineering capabilities to offer customized solutions, and maintaining a strong after-sales service network. Significant partnerships with suppliers and strategic alliances with other industry players also play a role in enhancing its market reach and profitability.
Pioneer Power Solutions Financial Statement Overview
Summary
Pioneer Power Solutions faces significant financial challenges with declining revenue and profitability, strained cash flows, and moderate leverage. While the balance sheet shows manageable leverage, the negative margins and cash flow trends highlight operational pressures.Income Statement
Pioneer Power Solutions has shown a declining revenue trend, with TTM revenue decreasing from the previous annual period. Gross profit margin decreased to 12.05% in TTM, down from 20.12% in the previous year, indicating pressure on profitability. Net profit margin remained negative, worsening from -4.57% to -20.92% TTM, alongside negative EBIT and EBITDA margins, reflecting operational challenges.40
Negative
Balance Sheet
The company's balance sheet shows a moderate Debt-to-Equity Ratio of 0.26, indicating manageable leverage levels. However, stockholders' equity has slightly decreased, and the equity ratio is at 36.65%, suggesting moderate financial stability. The return on equity is negative, reflecting operational losses impacting shareholder returns.55
Neutral
Cash Flow
Pioneer Power Solutions faces cash flow difficulties, with negative operating cash flow and free cash flow in the TTM period. The free cash flow growth rate is negative, and the ratios of operating and free cash flow to net income are unfavorable, indicating cash flow management issues.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 34.25M | 41.49M | 27.00M | 18.31M | 19.49M | 20.58M | Gross Profit |
| 4.13M | 8.35M | 4.61M | 1.39M | 881.00K | 1.17M | EBIT |
| -7.79M | -2.65M | -4.03M | -3.86M | -4.28M | -11.75M | EBITDA |
| -6.50M | -1.24M | -4.68M | -3.42M | -3.82M | -10.64M | Net Income Common Stockholders |
| -7.16M | -1.90M | -3.64M | -2.17M | -2.99M | -12.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 140.00K | 3.58M | 10.30M | 9.92M | 7.57M | 9.15M | Total Assets |
| 35.78M | 33.02M | 37.17M | 27.93M | 21.29M | 28.12M | Total Debt |
| 6.86M | 1.21M | 2.27M | 1.42M | 1.41M | 374.00K | Net Debt |
| 6.71M | -2.37M | -8.02M | -8.50M | -6.15M | -7.84M | Total Liabilities |
| 19.44M | 18.80M | 20.24M | 8.38M | 7.43M | 11.68M | Stockholders Equity |
| 16.34M | 14.22M | 16.93M | 19.55M | 13.86M | 16.43M |
| Cash Flow | Free Cash Flow | ||||
| -9.21M | -6.39M | -7.16M | -2.58M | -3.61M | -5.73M | Operating Cash Flow |
| -7.79M | -3.90M | -5.65M | -2.34M | -3.61M | -5.57M | Investing Cash Flow |
| -1.43M | -2.50M | 4.72M | -237.00K | 2.63M | 39.77M | Financing Cash Flow |
| 4.71M | -323.00K | -479.00K | 7.56M | 337.00K | -26.23M |
Pioneer Power Solutions Technical Analysis
Negative
2.99
Price Trends
3.53
Negative
3.96
Negative
3.77
Negative
Market Momentum
-0.10
Positive
33.21
Neutral
12.40
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PPSI, the sentiment is Negative. The current price of 2.99 is below the 20-day moving average (MA) of 3.25, below the 50-day MA of 3.53, and below the 200-day MA of 3.77, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 33.21 is Neutral, neither overbought nor oversold. The STOCH value of 12.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PPSI.
Pioneer Power Solutions Risk Analysis
Pioneer Power Solutions disclosed 33 risk factors in its most recent earnings report. Pioneer Power Solutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pioneer Power Solutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $107.41B | 28.86 | 20.23% | 1.37% | 7.25% | 18.36% | |
72 Outperform | $3.67B | 11.52 | 18.36% | 1.00% | -2.94% | 22.32% | |
71 Outperform | $17.79B | 23.09 | 25.26% | 1.53% | 4.76% | 2.27% | |
70 Outperform | $2.13B | 13.42 | 37.22% | 0.60% | 38.27% | 105.52% | |
69 Neutral | $29.24B | 32.18 | 26.22% | 1.98% | -11.28% | -23.69% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% | |
48 Neutral | $34.25M | ― | -43.18% | ― | -19.60% | -483.35% |
* Industrials Sector Average
Performance Comparison
PPSI
Pioneer Power Solutions
2.99
-1.49
-33.26%
ETN
Eaton
271.83
-36.23
-11.76%
ENS
EnerSys
91.58
-0.52
-0.56%
HUBB
Hubbell B
330.91
-80.64
-19.59%
POWL
Powell Industries
176.72
40.85
30.07%
ROK
Rockwell Automation
258.38
-19.79
-7.11%
Pioneer Power Solutions Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: -7.72% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements, including the successful sale of a business unit, strong revenue growth, and strategic partnerships. However, concerns were noted regarding executive bonuses and potential backlog variability. Overall, the company's financial health and growth prospects look positive.Highlights
Successful Sale of PSEP Business
Pioneer Power sold its PSEP business unit for $50 million, receiving $48 million in cash and a 6% equity stake in Mill Point's Voltaris platform.
Third Quarter Revenue Growth
The Critical Power business segment achieved a 130% year-over-year revenue increase, reaching $6.4 million.
Positive Operating Income
The Critical Power segment generated positive operating income of $211,000 compared to a loss of $621,000 in the previous year.
E-BOOST Platform Success
The E-BOOST platform has grown significantly, with $20 million projected revenue for 2024 and a backlog increase of approximately 45% compared to year-end 2023.
Strategic Partnership with SparkCharge
Pioneer Power announced a collaboration with SparkCharge to integrate mobile battery energy storage systems, enhancing the mobile EV charging market.
Revenue Guidance for 2025
Pioneer Power provided revenue guidance of $27 million to $29 million for 2025, with a focus on the E-BOOST product line.
Strong Balance Sheet
The company has zero debt and a strong cash position, enabling funding of growth plans.
Lowlights
Backlog Sequential Decline
The backlog for the Critical Power segment was down sequentially, indicating potential lumpiness in demand.
Large Executive Bonuses
A $2 million bonus was paid to the CEO, raising concerns despite the successful business sale.
Company Guidance
During the Pioneer Power Third Quarter 2024 Earnings Conference Call, key guidance metrics were outlined for the company's future performance. The company announced a revenue guidance of $27 million to $29 million for 2025, largely driven by sales and rentals of the E-Boost product line, alongside service and maintenance revenue projected at approximately $10 million. The Critical Power segment delivered a remarkable 130% year-over-year revenue growth in Q3 2024, with the backlog increasing by 45% to approximately $24 million compared to the end of 2023. The company also issued a special one-time cash dividend of $1.50 per share, to be paid on January 7, 2025. Management expressed confidence in achieving profitability based on these projections, emphasizing the strategic focus on expanding their E-Boost solutions and exploring potential acquisitions to further enhance their portfolio.Pioneer Power Solutions Corporate Events
Executive/Board ChangesShareholder Meetings
Pioneer Power Solutions Elects Board and Ratifies Auditor
Neutral
Dec 6, 2024
At the Company’s Annual Meeting, stockholders voted on key proposals, including electing seven board directors and ratifying Marcum LLP as the independent accounting firm for 2024. Over 7.27 million shares were represented, with directors receiving significant support and the accounting firm appointment ratified. These decisions shape the company’s leadership and financial oversight moving forward.
Executive/Board ChangesM&A Transactions
Pioneer Power Solutions Awards CEO and CFO Bonuses
Positive
Nov 15, 2024
Pioneer Power Solutions, Inc. awarded substantial one-time bonuses to its CEO, Nathan Mazurek, and CFO, Walter Michalec, acknowledging their pivotal roles in the sale of the company’s Electrical Infrastructure Equipment segment. These bonuses reflect the company’s recognition of their significant contributions to this strategic transaction, with Mazurek receiving $2,000,000 and Michalec $125,000, to be paid in cash according to the payroll schedule.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.